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TAP TIMES       -37-                                SEPTEMBER 2022



             New EDA software ban may                           a direct impact, and the ban has indeed
            affect China’s chip ambitions                       dealt an effective blow to Huawei.


        TAIPEI, Taiwan — The global EDA                         China falling behind
        software market size is estimated to                    Empyrean Technology is the leader of
        grow from $8.1 billion to $13.6 billion                 China’s EDA industry but its technology,
        from 2020 to 2024, with a compound                      revenue scale, and overall influence still
        annual growth rate of 13.8%.                            fall far behind the American EDA industry.


        Major players                                           Empyrean Technology’s “analog circuit
        At present, the EDA software market is                  design EDA” and “flat panel display circuit
        oligopolistic, consisting of major players              design EDA” are relatively mature while
        Synopsys, Cadence, and Siemens.                         “digital circuit design EDA” and “foundry
                                                                EDA” still lag significantly behind US-based
        According to TrendForce, Synopsys, Ca-                  EDA and have not yet touched upon GAA
        dence, and Siemens account for 32%,                     research and research and development.
        30%, and 13% of the market, respective-
        ly, in 2021, for a total 75% market share.              License updates needed
                                                                Even if China purchased a large amount of
                                                                authorized EDA software before the cur-
        Before mentioning the recent EDA sanc-                  rent sanctions take effect, the software
        tion, recall that the United States placed              must connect to the developer for license
        Huawei on its Entity List in 2019.                      updates before it can be used.


        At that time, American EDA companies                    This can be effectively controlled by the
        including Synopsys and Cadence were af-                 United States. Although China’s IC de-
        fected by the Entity List ban and could not             sign has no need for GAA EDA in the short
        authorize the transfer of EDA to Huawei’s               term, it is necessary for developing ad-
        HiSilicon. EDA departments and industry                 vanced 3nm process design in 3~5 years.
        revenue as a whole have not experienced                 Without US-based EDA tools, Chinese IC
                                                                design will experience developmen-
                                                                                  years. Without US-based
                                                                                  EDA tools, Chinese IC de-
                                                                                  sign will experience devel-
                                                                                  opmental difficulties from
                                                                                  initial chip design to back-
                                                                                  end system design.


                                                                                  Chinese foundries require
                                                                                  the use of EDA and the con-
                                                                                  straints imposed by U.S.-
                                                                                  based equipment and soft-
                                                                                  ware sanctions may affect
                                                                                  the long-term development
                                                                                  of China's semiconductor
                                                                                  industry. trendforce.com
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